He published a 200-page report(PDF) listing more than 6,000 items, including food products, minerals and consumer goods such as handbags, that the United States plans to hit with the extra tax. The Asian giant says it's shocked and that the proposals will harm the world.

The abrupt escalation is "totally unacceptable", said a Commerce Ministry statement.

The spokesperson also said the government would have to take the "necessary counter-measures".

The tariffs will not be imposed until after a two-month period of public comment on the proposed list, but some USA business groups and senior lawmakers were quick to criticise the move.

While the tit-for-tat tariff dispute has raised worries over its longer-term effect on the Korean economy and trade, more urgent tasks lie ahead for Korean automakers as the Trump administration is mulling fresh tariffs on imported vehicles and auto parts.

What's more likely is that Chinese government would more directly punish American companies by limiting foreign investment and the expansion of American companies within China.

CE said that if China introduces penalties for USA owned companies it could significantly weigh on U.S. stocks.

"This is where a painful situation gets more painful", said Phil Levy, a former White House economist in the George W. Bush administration. China could also try to force its currency lower to gain competitiveness. If it sold enough, that could drive up the cost of borrowing in the United States, but it would also inflict losses on China, by forcing down the value of those bonds.

The Trump administration's latest shot in the trade war with China has sent shudders through global financial markets. Stock markets in Shanghai dipped 1.8%, and Hong Kong fell more than 1.4%. Japan's benchmark Nikkei 225 index shed 1.2%.

The Retail Industry Leaders Association, a lobby group representing the largest USA retailers, said: "The president has broken his promise to bring 'maximum pain on China, minimum pain on consumers'".

Shay said that he hopes the administration will sit down with Chinese leaders to discuss the tariffs and China's intellectual property violations.

The officials said China has rebuffed United States complaints about unfair trading practices - including theft or forced transfer of American technology - and denied any harm was done to U.S. companies, and instead retaliated "without any worldwide legal basis or justification", Lighthizer said.

"We will remain vigilant in defending the ability of our workers and businesses to compete on a fair and reciprocal basis", he said.

Chinese officials are expected to retaliate in other ways, hitting USA firms in China with unplanned inspections, delays in approving financial transactions and other administrative headaches.

The list is subject to two months of finalization and input before possible implementation by President Donald Trump.

The new list-targeted at China's key manufacturing export industries-contains over 6,000 products, including fruits, vegetables, live eels, feathers and beaver heads as well as hi-tech minerals that the USA needs.

"It's a hard situation for a number of our companies". This will allow the two countries enough time to settle their high-stakes trade dispute through negotiations.